FM’s focus on Make in India and employment generation  

Finance Minister Nirmala Sitharaman

The 2025 Union Budget underscores the government's commitment to boost "Make in India," and in turn supporting employment generation. Globally, as China + 1 strategy for manufacturing gains momentum, India has further staked its claim for the relevant products in this regard and provided incentives and tariff support to boost manufacturing in such sectors. Prioritizing export promotion and extending support to the MSME sector, the budgetary initiatives aim to strengthen domestic manufacturing and create jobs across all the sectors of the economy, all in pursuit of the "Viksit Bharat@2047" vision.

A key focus of the budget is boosting agricultural productivity and growth to reduce reliance on food imports. Initiatives like the” 'Rural Prosperity and Resilience”, “Mission for Atmanirbharta in Pulses," a comprehensive scheme for fruits and vegetables, and a National Mission for high-yield seeds aim to induce self-reliance and empower farmers. Furthermore, reviving / establishing urea manufacturing facilities, improving cotton yields, and developing the fisheries sector are strategic steps towards self-sufficiency in these crucial areas. These measures also aim to improve rural livelihoods and reduce the dependence of rural population on migration to secure livelihood.

Building on the manufacturing story, the government has prioritised the growth of MSMEs in the country (contributing to about 36 percent of total manufacturing output and employing approximately 7.5 crore people). The proposed "National Manufacturing Mission" emphasizes on ease of doing business, workforce skilling, technology accessibility and product quality. This has been enhanced by the extending support for sectors with high demand such as toys, footwear and leather, with introduction of the National Action Plan for toys and a focus product scheme for footwear and leather sectors expected to generate employment for 22 lakhs people with a turnover of 4 lakh crore and exports of over 1.1 lakh crore.

The budget also signals a diversification of manufacturing focus, with policy measures facilitating shipbuilding clusters and a Nuclear Energy Mission for Small Modular Reactors (SMR) research and development. Additionally, the budget has further re-affirmed the government’s commitment to sustainability through cementing green manufacturing and related job creation, as seen in the support introduced for domestic clean tech manufacturing of solar PV cells, EV batteries, and grid-scale batteries etc.,

The sector is further strengthened by reducing or offering concessional custom duty rates for sectors like critical minerals, shipbuilding inputs, and electronic components. At the same time, custom duties on flat panel displays, essential for mobile phones and other electronic devices, have been increased.

The policy measures discussed above exhibit the government's strong commitment to supporting these labour-intensive sectors to provide employment for its vast workforce of over 580 million. Beyond manufacturing industries, budget 2025 reinforces the government’s commitment to boost innovation through new startup fund of funds, scheme for first-time entrepreneurs, enhanced credit guarantees, and increased R&D funding, aiming to drive long-term economic growth through technological advancements.

Furthermore, the government has also shown dedication towards enhancing the skills and employability of both the current and future workforce evidenced by budget initiatives like Atal Tinkering Labs in government schools to foster scientific thinking, National Centres of Excellence for Skilling, an AI Centre of Excellence for education, and expanding capacity in IITs and medical education.

In conclusion, this government has consistently prioritized strengthening India's manufacturing base and implementing measures to boost employment while developing a future-ready workforce. The 2025 budget continues this focus, advancing the "Make in India" initiative, building an "Atmanirbhar Bharat" (self-reliant India), and paving the way for a "Viksit Bharat" (developed India) by 2047.